Business Value through Controlled IT: Toward An Integrated Model of IT Governance Success and Its Impact

2014 ◽  
Vol 29 (2) ◽  
pp. 128-147 ◽  
Author(s):  
Arne Buchwald ◽  
Nils Urbach ◽  
Frederik Ahlemann
Keyword(s):  
Information Technology ◽  
It Governance ◽  
Integrated Model ◽  
Business Value ◽  
Decision Makers ◽  
Complete Understanding ◽  
Holistic Model ◽  
Multinational Organizations ◽  
Regulatory Pressure ◽  
The Impact

Owing to increasing regulatory pressure and the need for aligned information technology (IT) decisions at the interface of business and IT, IT governance (ITG) has become important in both academia and practice. However, knowledge of integrating the determinants and consequences of ITG success remains scarce. Although some studies investigate individual aspects of ITG success and its impact, none combine these factors into a comprehensive and integrated model that would lead to a more complete understanding of the ITG concept. To address this gap, our research aims at understanding what factors influence and result from successful ITG, and at determining how they can be translated into a model to explain ITG success and the impact thereof. Therefore, we conducted interviews with 28 IT decision makers in 19 multinational organizations headquartered in Europe. Our study synthesizes the fragmented previous research, provides new empirical insights gathered on the basis of a clear ITG conceptualization, and suggests three innovative constructs heretofore not related to ITG. Moreover, we elucidate in a holistic model the factors that make ITG successful, how ITG contributes to an IT organization's success, and how it eventually unfolds throughout the overall organization. The resulting model allows organizational decision makers to develop an effective ITG implementation and to explain the implications of successful ITG, thus providing a justification for the respective investments.

Framing Information Technology Governance in the Public Sector: Opportunities and Challenges

2015 ◽  
Vol 11 (4) ◽  
pp. 89-101 ◽  
Author(s):  
Khalifa Al-Farsi ◽  
Ramzi EL Haddadeh
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Public Sector ◽  
It Governance ◽  
Decision Makers ◽  
The Public ◽  
Technology Governance ◽  
Support Organizations ◽  
Information Technology Governance ◽  
Decision Making Processes

Information technology governance is considered one of the innovative practices that can provide support for decision-makers. Interestingly, it has become increasingly a de facto for organizations in seeking to optimise their performance. In principle, information technology governance has emerged to support organizations in the integration of information technology (IT) infrastructures and the delivery of high-quality services. On the other hand, decision-making processes in public sector organisations can be multi-faceted and complex, and decision makers play an important role in implementing technology in the public sector. The aim of this paper is to shed some light on current opportunities and challenges that IT governance is experiencing in the context of public sector services. In this respect, this paper examines the factors influencing the decision-making process to fully appreciate IT governance. Furthermore, this study focuses on combining institutional and individual perspectives to explain how individuals can take decisions in response to institutional influences.

scholarly journals The impact of information technology in decision making process of companies in Kosovo

2018 ◽  
Vol 51 (1-2) ◽  
pp. 13-23
Author(s):  
Emin Qerim Neziraj ◽  
Aferdita Berisha Shaqiri
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Decision Maker ◽  
Business Process ◽  
New Technologies ◽  
Decision Makers ◽  
Decision Making Process ◽  
Or Organization ◽  
The Impact ◽  
Future Business

Before the decision makers set much higher requirements in the decision-making than ever before due to the environment of decision-makers subject to change under the influence of progress and development of new technologies, networking individual or organization inside and the outside environment, and modern means of communication enabling continuous inflow, flow and sharing of data and information. In these modern conditions the process of collecting, analyzing, selecting data and information to make informed decisions in the context of possible restrictions and the available options, and ultimately making decisions as the basis for future business or behavior, is not simplified. The use of new technologies in the decision-making process provided numerous opportunities to facilitate decisions selection. However, the decision maker should still be able to differentiate which knowledge should be used to serve in decision making, and which models, methods, tools, systems, and procedures to be used in certain situations, with the purpose of successful decision selection. In this paper, we will examine the decision making process during the business process of the companies in Kosovo.

scholarly journals The Intermediate Role of Organizational Flexibility in the Impact of Using Information Technology on the Efficiency of the Application of IT Governance in Jordanian Industrial Companies

2020 ◽  
Vol 14 (7) ◽  
pp. 75
Author(s):  
Hamzeh Mohamed Al-Hawamdeh
Keyword(s):  
Information Technology ◽  
It Governance ◽  
Organizational Flexibility ◽  
Intermediate Variable ◽  
Industrial Companies ◽  
Stratified Sample ◽  
Comprehensive Survey ◽  
The Impact ◽  
Intermediate Role

The current study aimed to identify the intermediate role of organizational flexibility in the impact of using information technology on the efficiency of the application of IT governance in Jordanian industrial companies, the study population consisted of all Jordanian industrial companies which by the end of 2019 were (56) company. (23) company were excluded due to the lack of access to the necessary data for the study, bringing the study sample size to (33) company. Due to the small size of the study sample, all companies were taken with a comprehensive survey, and a random stratified sample was adopted to determine the size of the study sample in each company. Where the inspection unit included individuals working in the upper and middle administrative levels in Jordanian industrial companies. Multiple linear correlation test was used along with simple and gradient test , as well as Path Analysis using (Amos) And supported by the Statistical Package for Social Sciences (SPSS) program, the study reached many results, the most important of which was an indirect impact of the dimensions of the use of (information technology) combined ; in the efficiency of the application of IT governance with the presence of organizational flexibility as an intermediate variable among Jordanian industrial companies, as for the recommendations, it is necessary to find an organizational consistency between the uses of information technology in light of the use of COBIT 5 applications and guidelines in the presence of organizational flexibility, because it will help to adapt to unexpected crises and invest Opportunities for industrial companies at the local and global levels.

scholarly journals Dynamic capabilities for firm performance under the information technology governance framework

2020 ◽  
Vol 32 (2) ◽  
pp. 129-157 ◽  
Author(s):  
Sabine Khalil ◽  
Maksim Belitski
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Dynamic Capabilities ◽  
It Governance ◽  
Content Type ◽  
Governance Framework ◽  
Technology Governance ◽  
The Uk ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to investigate the role of dynamic capabilities in the Information Technology (IT) Governance view framework and explores the relationship between three domains of IT governance (Strategy, Management and Operations) and firm performance. Design/methodology/approach In this study, the authors used a mixed methods approach and using a survey instrument and its validation with interviews, to collect data from 134 successful European SMEs in the multi-country setting of Belgium, Bulgaria, Denmark, Spain and the UK. Findings The findings show that various IT governance mechanisms function as dynamic capabilities and are directly associated with firm performance. The impact of each mechanism is different. Originality/value This study highlights the relationship between IT governance acumens and organisational performance. It contributes to the field of IT Governance Framework in management, and the results may be generalisable to wider economies and different organisation types.

scholarly journals The board and IT governance: The what, who and how

2010 ◽  
Vol 41 (3) ◽  
pp. 23-32 ◽  
Author(s):  
S. Posthumus ◽  
R. Von Solms ◽  
M. King
Keyword(s):  
Information Technology ◽  
Corporate Governance ◽  
It Governance ◽  
Effective Control ◽  
Competitive Edge ◽  
Business Goals ◽  
Organizational Resource ◽  
Strategic Impact ◽  
Board Level ◽  
The Impact

This paper discusses the importance of corporate governance and the need to implement it effectively in any organization. Furthermore, information technology is discussed along with its impact on enabling an organization to achieve its business goals and attain a competitive edge in industry. This makes IT a critical organizational resource with great strategic impact and necessitates that it be governed effectively through sound IT governance efforts. However, currently there seems to be a significant lack of board-level understanding with respect to the impact of IT on the business and therefore IT may not be adequately directed and controlled. To address this problem, a model is proposed in this paper to enable the board of an organization to develop an understanding of how to issue directives and implement effective control over IT so that IT supports organizational business goals and continues to provide value to an organization.

The Interrelationships Between Information Technology Spending, CEO Equity Incentives, and Firm Value

2014 ◽  
Vol 28 (2) ◽  
pp. 41-65 ◽  
Author(s):  
Adi Masli ◽  
Vernon J. Richardson ◽  
Juan Manuel Sanchez ◽  
Rodney E. Smith
Keyword(s):  
Information Technology ◽  
Firm Value ◽  
Ceo Compensation ◽  
It Governance ◽  
Business Value ◽  
Risky Asset ◽  
Equity Compensation ◽  
Equity Incentives ◽  
Compensation Incentives

ABSTRACT We examine the interrelationships between information technology spending, CEO equity compensation incentives, and firm value. We present two related pieces of evidence. First, we find that CEO equity incentives are associated with IT spending, suggesting that CEOs with higher incentives are more likely to invest in a risky asset such as IT. Second, we find that the association between IT spending and business value is stronger for firms that grant CEOs higher equity incentives. Our study contributes to the CEO compensation and IT governance literatures.

scholarly journals Information Technology Governance on Audit Technology Performance among Malaysian Public Sector Auditors

2018 ◽  
Vol 7 (8) ◽  
pp. 124 ◽  
Author(s):  
Farida Veerankutty ◽  
Thurasamy Ramayah ◽  
Noor Ali
Keyword(s):  
Information Technology ◽  
Public Sector ◽  
Technology Use ◽  
Technology Implementation ◽  
It Governance ◽  
Management Support ◽  
Technology Governance ◽  
Use Of Technology ◽  
Audit Technology ◽  
The Impact

The concept of Industry 4.0 has considerably altered the way organisations operate and has impacted every aspect of life. Furthermore, the fast-growing trend of information technology (IT) transformation in organisations and huge IT investment by Malaysian government have triggered the significance of IT risk and its related controls. Besides, technology-enabled auditing and IT-oriented audit procedures have become crucial when performing audit tasks in an electronic environment. Although many initiatives are being implemented to improve technology usage, audit technology use among auditors is still low and auditors are not attaining sufficient progress in the use of technology. This implies the current strategies and policies may not effectively support technology implementation. In the same vein, the under-utilisation of technologies was reported due to inadequate governance. Thus, this study intends to investigate the impact of IT governance on audit technology performance. IT governance is a mechanism to stimulate anticipated behavior in the use of technology among the employees of an organisation. Surveys using closed-ended questionnaires were distributed to approximately 309 Malaysia public sector auditors. The results show that IT governance mechanisms such as IT strategy and management support significantly influence the audit technology performance. IT governance does play a significant role in assuring the successful utilisation of audit technology.

Causality in information technology business value: a review

2015 ◽  
Vol 21 (3) ◽  
pp. 482-516 ◽  
Author(s):  
Sonal Daulatkar ◽  
Purnima S. Sangle
Keyword(s):  
Information Technology ◽  
Causal Reasoning ◽  
Dynamic Models ◽  
Organizational Transformation ◽  
Business Value ◽  
General Category ◽  
Holistic Model ◽  
Content Type ◽  
Art Research ◽  
Practical Implications

Purpose – Through a detailed review of Literature, the purpose of this paper is to provide insights into the state-of-the-art research about the process of information technology business value (ITBV) creation, a less-traversed direction in ITBV research, from the perspective of causality since a lack of causal reasoning may be disastrous for ITBV creation. Design/methodology/approach – With the help of eight keywords, ten databases were searched which fetched about 415 articles of which 22 were selected based on their relevance and proved as the base papers for classifying available literature. A further forward and reverse search fetched an additional 34 articles, resulting in a total of 56 articles which were reviewed in detail. Findings – The five main categories of literature which emerged are ITBV (General), ITBV benefits, mediating factors and synergy (which use of organization dynamic capability (ODC) as first stream of ITBV research), and IT-enabled organizational transformation (ITOT as second stream). ODC is fairly mature, however, ITOT will benefit from a further research. Research in the ITBV (General) category suggests the development of dynamic models as opposed to the prevalent static models of ITBV creation. Research limitations/implications – For the period 1990-2008, only the most important articles were included in the study and hence certain pre-2008 articles’ view might have been overlooked. Practical implications – The literature review will give practitioners a perspective to look at specific areas in the context of their organization to develop capabilities which will lead to enhanced ITBV creation. Originality/value – This review focusses on ITBV creation and helps move toward building of a dynamic holistic model of ITBV creation by providing only a bird’s eye view is provided of the most important articles from 1990 to 2008 but a comprehensive view of literature from 2008 to mid-2014.

A Framework for Research on Information Technology Governance in SMEs

2017 ◽  
pp. 53-81 ◽  
Author(s):  
François Bergeron ◽  
Anne-Marie Croteau ◽  
Sylvestre Uwizeyemungu ◽  
Louis Raymond
Keyword(s):  
Information Technology ◽  
Conceptual Framework ◽  
It Governance ◽  
Business Value ◽  
Technology Governance ◽  
Information Technology Governance ◽  
It Resources ◽  
Research Propositions ◽  
Alternative Theories

The need to effectively manage IT resources such that they enhance the business value of firms makes IT Governance (ITG) an important issue for both IS researchers and practitioners. The purpose of this paper is to build a conceptual framework for ITG in small and Medium-Sized Enterprises (SMEs). The authors first analyze the main theories applied in ITG research, and confront them with the specificities of SMEs. The authors then highlight the limits of those theories in SMEs context and discuss adaptations needed or alternative theories in such context. The resulting framework is then applied to generate a set of six research propositions on ITG in SMEs.

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